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Side A ------ Side B
Risk ------ Chance of Financial Loss
Policy ------ Written contract effecting insurance 
Insurance  ------ A contract where one indemnifies another.
Binders  ------ Temporary Insurance- Oral or Written & includes all terms of the policy 
Contract of Adhesion ------ Contract created by insurance company- insured cannot negotiate terms.
Personal Contract ------ Cover persons- not property
Conditional Contract  ------ The obligation of the insurer may be based on insured satisfying certain conditions.
Indemnity ------ One should not profit. Actual Cash Value: replacement cost less depreciation
Departures ------ Replacement Cost: New for OldFlorida Value Policy Law: If total loss, company must pay the policy limit regardless of property value.Agreed Value: Stated Amount
Insurable Interest  ------ One who would suffer an economic loss/pays% of loss to value of interest. Must exist at the time of the loss. (Financial Interest or on Deed)
Peril ------ Cause of a loss
Hazardex's: Old Plumbing, Frame Houses, Trampoline, Slides, etc. ------ Increased the chance of the lossPHYSICAL: Physical characteristic of an objectMORAL: Intentional Loss (Conscious)MORALE: Accident Proneness (Unconscious) 
Proximate Clause ------ Unbroken connection between an occurrence and the damage
Direct Loss ------ Physical harm to tangible property (Vehicle in accident)
Indirect Loss ------ Economic Loss as a consequence of Direct Loss (Rent Vehicle due to accident)
Lenders Interest ------ Mortgage Clause/Loss Payable Clause (loss payee): 1- Gives MTG advance notice of cancellation/nonrenewal 2- MTG is covered even if insd is engaged in act of omission preventing payment.3- MTG can continue policy if premium is not paid.
CoInsurance ------ Did                                   Should x Coinsurance  X Loss= RecoveryInsd agrees to carry a certain % of the value of the property in insurance, if they do we will pay the loss, if not we will penalize them)  If insd is underinsured coinsurance is applied. (Policy x Loss / RC=payment)
Specific Insurance ------ Separate limit for each building and contents
Blanket Insurance ------ Single amount of two or more coverage items- full amount to any one item.
Deductibles ------ Straight: Deduct flat amount from loss paymentFranchise: Pay from dollar one if loss equals or exceeds the deductible (pay nothing or pay all)Percentage: am amount is deducted from the loss
Subrogation ------ When insurer pays the insd for loss, rights are transferred, insurer may seek damages from the at-fault party.  Waiver of Subrogation may be allowed.
Assignment ------ Cannot transfer policy to another without company's permission.
Other Insurance  ------ Primary: Policy pay firstExcess: Primary policy must be exhausted, then this policy will applyPro-rata: Will pay a proportion of a loss as it bears to the overall amount of coverage in force.
Liberalization ------ Broaden coverage, without additional premium
Appraisal ------ Determines value of property without legal action. Insd hires an independent appraiser and company hires independent appraiser, if they cannot agree an Umpire is hired and any two common decisions are binding on all parties.
Abandonment ------ Insd cannot dump damage property and request full value of property.
Negligence ------ Failure to act as a prudent person would have in the same circumstances.
Legal Liability ------ Comparative Negligence- defendant asserts that the plaintiff in some way contributed to the cause of the injuries. Ex: Plaintiff suffered $10K was 30% negligent-damaged were reduced from $10K to $7K (Currently being used in FL)Contributory Negligence- If 1% at fault- not entitled to any benefits.
Severability of Interest ------ Insurance applies separately/equally to each insd. Ex: Husband and wife

Side A ------ Side B
Risk ------ Chance of Financial Loss
Policy ------ Written contract effecting insurance 
Insurance  ------ A contract where one indemnifies another.
Binders  ------ Temporary Insurance- Oral or Written & includes all terms of the policy 
Contract of Adhesion ------ Contract created by insurance company- insured cannot negotiate terms.
Personal Contract ------ Cover persons- not property
Conditional Contract  ------ The obligation of the insurer may be based on insured satisfying certain conditions.
Indemnity ------ One should not profit. Actual Cash Value: replacement cost less depreciation
Departures ------ Replacement Cost: New for OldFlorida Value Policy Law: If total loss, company must pay the policy limit regardless of property value.Agreed Value: Stated Amount
Insurable Interest  ------ One who would suffer an economic loss/pays% of loss to value of interest. Must exist at the time of the loss. (Financial Interest or on Deed)
Peril ------ Cause of a loss
Hazardex's: Old Plumbing, Frame Houses, Trampoline, Slides, etc. ------ Increased the chance of the lossPHYSICAL: Physical characteristic of an objectMORAL: Intentional Loss (Conscious)MORALE: Accident Proneness (Unconscious) 
Proximate Clause ------ Unbroken connection between an occurrence and the damage
Direct Loss ------ Physical harm to tangible property (Vehicle in accident)
Indirect Loss ------ Economic Loss as a consequence of Direct Loss (Rent Vehicle due to accident)
Lenders Interest ------ Mortgage Clause/Loss Payable Clause (loss payee): 1- Gives MTG advance notice of cancellation/nonrenewal 2- MTG is covered even if insd is engaged in act of omission preventing payment.3- MTG can continue policy if premium is not paid.
CoInsurance ------ Did                                   Should x Coinsurance  X Loss= RecoveryInsd agrees to carry a certain % of the value of the property in insurance, if they do we will pay the loss, if not we will penalize them)  If insd is underinsured coinsurance is applied. (Policy x Loss / RC=payment)
Specific Insurance ------ Separate limit for each building and contents
Blanket Insurance ------ Single amount of two or more coverage items- full amount to any one item.
Deductibles ------ Straight: Deduct flat amount from loss paymentFranchise: Pay from dollar one if loss equals or exceeds the deductible (pay nothing or pay all)Percentage: am amount is deducted from the loss
Subrogation ------ When insurer pays the insd for loss, rights are transferred, insurer may seek damages from the at-fault party.  Waiver of Subrogation may be allowed.
Assignment ------ Cannot transfer policy to another without company's permission.
Other Insurance  ------ Primary: Policy pay firstExcess: Primary policy must be exhausted, then this policy will applyPro-rata: Will pay a proportion of a loss as it bears to the overall amount of coverage in force.
Liberalization ------ Broaden coverage, without additional premium
Appraisal ------ Determines value of property without legal action. Insd hires an independent appraiser and company hires independent appraiser, if they cannot agree an Umpire is hired and any two common decisions are binding on all parties.
Abandonment ------ Insd cannot dump damage property and request full value of property.
Negligence ------ Failure to act as a prudent person would have in the same circumstances.
Legal Liability ------ Comparative Negligence- defendant asserts that the plaintiff in some way contributed to the cause of the injuries. Ex: Plaintiff suffered $10K was 30% negligent-damaged were reduced from $10K to $7K (Currently being used in FL)Contributory Negligence- If 1% at fault- not entitled to any benefits.
Severability of Interest ------ Insurance applies separately/equally to each insd. Ex: Husband and wife